Malarky - Posted by Jim FL
Posted by Jim FL on January 17, 2003 at 22:30:00:
Brian,
IF everything goes according to plan with a subject to deal, whether it is country wide or not, your chances of the loan being called due are minimal.
Keep the payments up, keep the house insured, pay the taxes, and you’ll have no problem.
I’ve bought quite a number of houses sub2, plenty of which were CW loans.
I’ve even talked to countrywide to get them to send insurance escrow money to a new insurance company.
We changed because we got better rates, and increased cash flow.
It was a non over occupied policy, listing the trust and the lender as the insured.
Was not a problem.
Each case I’ve read about, viewed docs faxed to me about, or talked to investors about, SOMEONE TOLD THE LENDER, or PAYMENTS WERE NOT MADE.
Usually both.
Make sure your paperwork is VERY CLEAR, explaining how the transaction will take place, be sure to explain to the seller how it will work.
Remind the sellers, verbally and in writing, NOT to notify the lender.
Make sure they know that doing so will make you lose the house possibly, as well as their credit getting damaged when the loan gets called.
I am VERY blunt with my sellers, and tell them straight out not to tell the lender.
Their is risk involved with this type of transaction, but we know how to minimize it, and doing so will provide a solution to the sellers most immediate problem.
I’d not pass on a good deal just because the loan was held by CountryWide.
Although honestly, take a closer look at your deal here.
With the numbers you gave, I agree with TRandle in another response.
This seems a bit skinny to me.
If you go ahead with it…
I’d make sure the buyers were closer to getting a loan than not.
Goos luck,
Jim FL